After US and China, India is the third largest consumer of oil. As far refining capacity is concerned India is fourth largest refiner of oil after United States, China and Russia.
In 2022-23, India with a total refining capacity of around 250 MMTPA is Asia’s second largest refiner. To distribute the refined oil to customers India has over 70,000 retail outlets operated by state owned oil marketing companies (OMC) as well as private companies.
These figures indicate increasing demand for diesel and petrol in the country. The current number of oil refineries in India is inadequate to meet the ever growing demand for petroleum products.
Moreover, oil refining is a very complicated process and it involves many steps to extract petrol, diesel, and kerosene from the crude oil.
Right now there are 23 small and big oil refineries operating in India to meet this demand. Out of 23, 11 is owned and operated by Indian Oil Group.
But why do you need to know about these refineries? There two good reasons.
Career
Young college graduates who want to start their career in energy sector can take up courses in chemical engineering. After the completion of the course they will be able to find high paying jobs in these refining companies.
In India energy sector is expanding like never before, hence there will be no dearth of job opportunities in the country.
Investment
Second reason is you can invest in these companies and get a good yearly returns. These companies are private as well as publicly owned. Due to rising energy demand these companies will continue to make profits.
Let us learn about top oil refineries in India.
First oil refinery in India was established in 1901 in Digboi, Assam. Since then India has come a long way.
Following are the 8 biggest Oil Refineries in India.
1. Reliance Industries Limited – Jamnagar Refinery
The biggest oil refinery in India is located in Jamnagar Gujarat owned by Reliance industries. There are actually two refineries one for exports and other for domestic consumption.
The approximate refining capacity is 1.24 million barrels per stream day. The market share of this refinery is 27%. This state of art refinery was built in record time with minimum cost compared to other refineries in the world.
The refinery is owned by Mukesh Ambani.
2. Bharat Petroleum Corporation Limited (BPCL) – Kochi Refinery
The second refinery in the list is BPCL Kochi refinery, Kerala. BPCL is India’s one of the best performing public sector undertaking. Government classified BPCL as Maharatna companies.
BPCL has 3 refineries in India with a market share of 15%. The production capacity of Kochi Refinery is 15.5 million tons per year.
The total revenue of the refinery before Pandemic was over $8 billion.
Kochi refinery is first oil refinery in India that offers supplies of any grade Fuel Oil and High paraffinic to the international market.
3. Nayara Energy Limited – Vadinar Refinery
Vadinar Refinery located in Gujarat is owned and operated by Nayara Energy Limited. Rosneft has 49.13% stake in the company. The refinery started its operation in 2006.
Vadinar refinery is actually second largest oil refinery in India after Reliance Jamnagar refinery with an annual capacity of 20 million tons or 405,000 barrels per day.
What makes this refinery unique is it is one of the world’s most complex refineries.
4. Oil and Natural Gas Corporation (ONGC) – Mangalore Refinery
Mangalore Refinery and Petrochemicals Limited (MRPL) is a subsidiary of Oil and Natural Gas Corporation which is a state owned enterprise. MRPL is declared Miniratna by the Indian government in 2007.
MRPL is a state of art refinery with a refining capacity of 15 million metric tons per annum. The current market share of MRPL is 6%. The company revenue in 2022 was $11 billion.
5. Indian Oil Corporation Limited (IOC) – Panipat and Paradip Refinery
As I said earlier Indian Oil Corporation Limited (IOCL) operates 11 refineries in India. IOCL has the largest market share of 32%.
Their top two refineries by capacity are Panipat Refinery and Paradip Refinery. Pradip refinery started its operation in 2016 and Panipat refinery in 1998.
Both refineries have a capacity of 15 million tons per year each.
Pradip refinery process dirty crude oil coming from Latin America and Panipat refinery is designed to handle both indigenous and imported crude.
6. Indian Oil Corporation Limited (IOC) – Gujarat Refinery
Gujarat refinery is third largest refinery owned by IOCL. It is located in Koyali, Vadodara, Gujarat. The refinery is one of the oldest refineries commissioned in the year 1965.
The current capacity stands at 13.7 million tons per year and expected to reach 18 million tons in coming years.
The refinery outputs include petrol, diesel, aviation turbine fuel, food grade hexane, linear alkylbenzene, bitumen, and coke.
7. Bharat Petroleum Corporation Limited (BPCL) – Mumbai Refinery
Mumbai refinery is second largest refinery owned by BPCL after Kochi refinery. The total capacity of the refinery is around 12 million tons per year.
The refinery was established in the year 1955 under the ownership of Burmah-Shell refineries limited.
The main output of the refinery includes LPG, Naphtha, Toluene, Hexane, Kerosene, Jet Fuel, Diesel and also processes various types of crude oil.
8. Chennai Petroleum Corporation Limited – Manali Refinery
Manali Refinery is owned by Chennai Petroleum Corporation. Launched in 1969 it is one of the oldest refineries in southern India.
It is a complex and integrated oil refinery with a capacity of 10.5 million tons per year.
The refinery outputs include products like LPG, Motor Spirit, Kerosene and paraffin wax.
So these were some of the Biggest refineries in India.
